Japan’s financial regulator the Financial Services Agency (FSA) has suggested easing corporate tax rules for crypto assets.
To support prime minister Fumio Kishida’s focus on reawakening the economy, the FSA will also focus on lighter levies for individual stock investors and tax breaks for investors.
Kishida’s “New Capitalism” vision aims to boost the world’s third-largest economy with a pledge to double the wealth of its residents’ households, all the while offering support to the country’s growing Web 3.0 businesses.
In its annual tax-code change request, the Japanese regulator proposed that companies become exempt from paying taxes for paper gains on crypto coins they hold after issuing them.
As for retail investors, the FSA suggested expanding a tax break initiative, named the Nippon Individual Savings Account (NISA) by making the program permanent and raising investment limits.
Under the NISA initiative, a portion of investors’ gains and dividends can be exempt from capital gains tax over time.
Statistics show that Japanese households hold around $14.5tn of financial assets in cash and deposits.
The new move by the FSA aims to support the country’s efforts to help investors use their savings by putting them into stocks thus boosting the overall financial economy.
Japan has been working hard to support its economy, especially focusing on up-and-coming companies. Japanese authorities eliminated the capital gains tax on crypto start-ups from 2023.
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